The time limit for the exemption for relocation expenses and benefits applies for tax and for Class 1A NICs liability but not to Class 1 NICs. Follow this link for more guidance on NICs.

The relocation expenses must be incurred, or the relocation benefits provided, before the end of the tax year following the one in which the employee starts the new job. For an example of how the time limit works look at EIM03106.

As long as the employee actually moves home the date on which the removal takes place does not matter: the time limit will be satisfied for each expense incurred or benefit provided before the deadline.

In certain circumstances, HMRC may be able to extend the time limit. The circumstances in which we will do so are set out at EIM03105. If you would like the time limit extended you should approach your Inland Revenue office.

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